A £20,000 bill for owning a second home in popular holiday destinations like Blackpool has left many homeowners reeling. The issue lies in council tax authorities charging visitors who rent out their properties through lettings websites.
A £20,000 bill for owning a second home in popular holiday destinations such as Blackpool has left many homeowners reeling. The issue is that some council tax authorities are charging visitors who rent out their properties through lettings websites like Airbnb.
The problem began when the UK government‘s decision to exempt short-term lettings from council tax came into effect in April 2022. Initially, this meant that landlords would not have to pay council tax on their second homes. However, as the pandemic continued, the rules were updated and councils were given the power to charge visitors who rent out their properties through websites like Airbnb.
In Blackpool alone, this has resulted in a £20,000 bill for one homeowner, with council tax authorities claiming that the visitor had overstayed and failed to pay their share of the council tax. The council tax authority claims that they have been left with no choice but to pursue the tenant for payment after the initial exemption expired.
The issue is complex, as it affects not just homeowners who rent out their properties through lettings websites, but also those who do not – such as friends and family members who occasionally stay in a second home. The impact on these individuals can be significant, particularly if they have been left with unexpected bills to pay.
One way for landlords to avoid the issue is by registering their second homes with their local council tax authority. However, this requires that owners meet specific criteria – such as owning the property outright or having a minimum annual income of “a certain amount”.
